Trade Options on Futures
Crude Oil * Directional & Neutral Positions
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Options fall into the category of being slightly overvalued in volatile markets in the weekly options report. Ask about the Weekly Option's Report for more information.
Contract Size - 1,000 barrels.
Tick Size: Outright: dollars and cents with 0.01 points=$10
Trading Hours: CME Globex: Sunday - Friday 6:00 p.m. - 5:00 p.m. Eastern Time (CST).
Prices have fallen significantly.
WTI down 10% historic low with a substantial move lower hinging whether Russia with OPEC would cut production. They aren't going along with production cuts so much uncertainty which was a drop on oil prices. Levels are back to 2016 levels. Lots of volume in the April contract..
Below illustrates a directional play to the upside using a call vertical swap. Alternatively, beneath is bearish.
The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.
Vertical Swap Bullish
Vertical Swap Bearish
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